China Merchant Securities, the country’s third-largest securities firm in terms of net capital, opened its first London office yesterday and has declared its intention to become a comprehensive investment bank.

Stephen Kan, deputy chief executive officer of China Merchants Securities (Hong Kong), has moved over to London to become chief executive of the bank's UK arm and yesterday became active on the Financial Services register.

He told Financial News in an email that the firm is aiming to become “a comprehensive investment bank” with particular focus on offshore renminbi and cross-border initiatives between Europe, the Middle East and Africa.

The UK arm of China Merchants Securities - based in the Square Mile - was authorised by the FCA yesterday and hopes to create 40 new UK jobs in an initial phase, with more planned.

The new entrant joins Bank of China International and GF Financial Markets as Chinese firms with an investment banking presence in London.

The news comes as Chinese Premier Li Keqiang conducts a three-day visit to the UK to bolster business ties between the two nations, with trade and investment deals worth some £14 billion announced yesterday.

Kan added: “The missions of CMS UK are to bridge the needs of clients on cross-border investment and financial services between UK and the Emea region and the People’s Republic of China.”

The UK arm of China Merchant Securities will initially provide risk management services for trading commodities on some of the largest markets in the UK, including the London Metals Exchange and the IntercontinentalExchange Europe.

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The UK Treasury said yesterday that the move would increase the volume of commodity trading in London and play a significant part in the internationalisation of the renminbi, reinforcing London’s position as the second largest offshore renminbi trading centre.

The announcement followed a series of initiatives this week between London and Beijing.

The People’s Bank of China confirmed the appointment of China Construction Bank as the renminbi clearing bank in London. The London Stock Exchange also signed agreements with Bank of China and the Agriculture Bank of China in an effort to help strengthen the renminbi offshore market in the UK.

China Minsheng Investment Corporation, China’s largest private sector investment group – with capital of $8 billion - announced yesterday that it will open its European headquarters in London with an investment of around £1.5 billion.

China has in the past months passed reforms providing ways to move renminbi holdings out of China, improving the currency’s status as a global payments currency.

The currency ranked seventh in a ranking of world currencies by value of payments made in them in March, according to the Society for Worldwide Interbank Financial Telecommunication, up from 13th in January 2013.

Earlier this month, Cathy Dou, head of global transaction services, China, at Bank of America Merrill Lynch, told Financial News it had overtaken 22 currencies in the past three years.

She said: “During this period, the growth rate of the renminbi as a settlement currency was 15%, while the average growth rate of other currencies is only 7%.”

China Merchant Securities, along with other Chinese firms, has been on the march in recent times. The bank, which employs over 8000 staff, recently helped arrange its first US IPO when it helped to list Chinese real-estate website operator Leju Holdings in New York.

In 2012, Osborne launched a City of London to support the development of London as a centre for renminbi business, enrolling the help of 13 banks to do so. Britain has since made progress on that goal, unveiling a slew of measures this year to become the leading center for offshore renminbi trading.